Summaries of the various milk marketing orders, effective ..

Historic, Archive Document

Do not assume content reflects current
scientific knowledge, policies, or practices.

UI'IITED GTATT^.S DEPARTI-IEMT OF AGRICULTURE
PRODUCTION AND FiARKETING ADL'JNISTPJITION
DAIRY BRANCH

INSERTS
FOR

Of

SUM'-IARIES
FLUID MILK I.IARKETING ORDERS

Revised to Jamiary 1, 1952
and

Federal Register Citations
f cr the Milk Pricp; .Orders

The attached are inserts to be substitiited for the corresponding
pages in the ^iuriiaries of Fluid Mil'v :.:arketing 0''"ders^ April 1,
19U8j and Fedor'^Kl Register Citations for the ioilk price orders.
These inserts revise the Federal orders as effective on January 1
1952, The last insert Yiras issued on December 1, 1951 •

Agriculture - Washington

(Rev. IAA2)

(a)

ST . LOUIS - ORDER NO . 3

Citation

Ih FR h77^

15 FR 1827
1$ FR 9U27

16 FR 12170

Date Published

7/30/a9

3/31/50
12/30/50
12/1/51

Action

Order , as amended
Amendment Mo« h
Amendment No« 5
Amendment Ho. 6

16 FR 9929

15 FR 1770

16 FR 2782
16 FR 110l;8
16 FR 110l;9

BOSTON - ORDER HO. h
9/29/51

OKLAH'jMA city ORDER HO. 5

3/30/50

3/30/51
10/31/51
10/31/51

Order, as amended

Order

Amendment No. 1

Amendment No, 2

Amendment Ho. 3

15 FR 1829

16 FR 278Ii

TULSA ORDER HO. 6

3/31/50 ,
3/30/51

Order

Amendment No. 1

15

FR

7173

15

FR

9I128

16

FR

3691

16

FR

6339

16

m

10922

16

FR

12851

nKaUiCEE ORDER HO, 7

10/26/50
12/30/50

/1/51
6/30/51
10/27/51
12/22/51

Order

Amendment No. 1
Amendment H^o, 2
Amendment Ho. 3
AiiiendiTient Wo, I4
Order suspending
certain provisions,

DUBUQUE - ORDER NO. 12

lU FR 3226

Order, as amended

«

(Rev. 1/1/52)

(b)

KANSAS CITY - ORDER HQ. 13

Citation

16 FR 67
16 FR 110^0

Date Published

lA/51
10/3lA^l

Action

Order, as amended
Amendment No, 3

miPHIS ~ ORDER NO. 18

15 FR 6!^33

9/28/50

Order

SPRINGFIELD, MISSOURI ^ OR.DER NO. 21

16 FR 1225 2/9/51
16 FR 12176 12/1/51

Order
Amendment

16 FR 63I1I

DETROIT ~ ORDER NO . ^ 2^
6/30/51

Order

16 FR 3631
16 FR 8816

FJ rET SOUND ~ ORDER NO. 25

I1./28/5I
8/31/51

Order
Amendment

Um YORK - ORDER NO. 27

16 FR 12851

12/22/51

Order, as amended

(Rev. 1/1/52)

(g)

SOUTH BEMD-LAPORTE - ORDER NO, 6?

Citation

Date Published

Action

1.^ FR 1776
1^ FR 9iL32
16 FR 6359

3/30/50

12/30/50
6/30/51

Order, as amended

Amendxaent No^. 1
Amendment No, 2

16 FR 2786

16 m 8817

17 FR 7

YflCHITA - ORDER NO. 68

3/30/51
8/31/51
1/1/52

Order, as amended
Amendment No, h
Amendment No, 5

DAYTON-SPRINGFIELD ^ OP.DER I'iO. 71

16 FR 10052

10/3/51

Order, as amended

1^

(Rev.

FEDERAL lilILK ORDER NO. ,27
New York, New York

18

Marketing Area;

New York City and Counties of Nassau, Suffolk (except P'isher's
Island), and ITestchester J all piers, docks and wharves connected
therewith and all craft moored thereat; and including territory
ivithin such boundries which is occupied by government establish-
ments .

Handler;

Person who:

(1) Haiidles milk or milk products, Y/hich milk was received
at a pool plant or at a plaiit approved hj any health
authority as a source of ijillk for the marketing area; or

(2) Handles milk, concentrated fluid milk, cultured or flavored
milk drirks, cream, or skim milk which is shipped to the
marketing areaj

(3) A cooperative association is a handler with respect to milk
vrhich it causes to be delivered from dairy farmers to a pool
plant any other liandler for which such association
receives pajiaent.

Pool Plant;

A pool plant is one vjhich is found to meet certain requirements
(specified by the order) and is specifically designated as a pool
plant by the Secretary, A plant so designated remains a pool plant
until the designation is cancelled. Any other plant is also a pool
plant during any month if it supplies certain minimum amounts cf
Class I~A milk to the marketing area. These minimum amounts are
specified in the order for different months of the year.

Producer :

Dairy farmer ^Nhose milk is delivered direct from farm to a pool
pi a at.

Classification ;

Basis of Classification - Classification is in accordance with the
form in which irdlk is held at, or moved from (within the month
following the moi th received from farmers), the plant at which
classification is determined. Classification is determined at the
plant where thp nuMk is received from dairy farmers, unless such
milk is shipped to another plant, or plants, in the form of milk or
cream. If shipped in either of these form.s, classification is based

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New York (Rev, l/l/^2)

19

on the form held at, or moved from, the plant to v/hich it is
shipped (mthout liiivlt on tlie nu.mber of interplant inox^einents
vrhich may take place in these forms prior to classification),
subject to special conditions specified in the order ^

Class I-A - 'lilk, concentrated flnid milk, fluid milk products,
and cultured or ilavored milk drinks containing 3.0 percent to
5.0 percent of butterfat (except those classified in- I-B or I-C)
and all milk t/ie classification of vvhich is not other^riuse
established.

Class I-B - All Class I-A products delivered to a plant or
purchaser in an area regulated by another Federal order and
not received at a plant in the market.i.ng area except as an
incident to i"^s transportation s.n-.i delivery to a point outside
the marketing area pro-^/ided that use aboard a ship or other
carrier shell not constitute such delivery.

Class I~C - All Class I-A products which are delivered to a
plant or purchaser in an area not under Federal regulation and
not received at a plant in the marketing area except as an
incident to its transportation and dleivery to a point outside
the marketing area prc/ided that use aboard a ship or other
carrier shall not constitute such delivery.

Class II - Cream, sweet or sour, fluid cream products, and
cultured or flavored milk drinks containing less than 3»0 percent
or more than 5.0 percent of butterfat sold in the marketing area,
except products classified in another class.

Class III - Storage cream, all milk that leaves the plant in the
form cf products mentioned in- other classes if such products have
been sterilized and leave the plant in hermetically sealed con~
tainors , concentrat-jd fluid milk not at any time packaged in con-
sumer packages, a,nd all other products not in some other class*

Class Prices (3.5 percent but'oerfat) :

Class I-A - Price is coL-vputed in accordance ^Alth the follov/ing
formula:

(l) Multiply a base price of t'5»66 hy the monthly Y^holeslae
price index for all commodities in the second preceding
month as reported by the Bureau of Labor Statistics, United
States Departm.-:nt of Labor (l9hQ equals 100, i.e., the
index ^dth 1P26 as base period di-(n.ded by l61;,9).

(2) Determine monthly "utilization percentages" as follows:

\ . •

New York (ReVo 1/1,^2)

19 (a)

Calculate the percentage that the volume of milk in
Classes I-A, I-B, and I-C was of the total volume of
reported receipts of milk from producers and from un-
revealed sources for each of the 36 months for a three
year period ending with the second preceding month c

(3) Calculate the average of the 36 utilization percentages «

(h) Calculate the average of the 6 utilization percentages for
the second and third preceding months and for the same
months of the two preceding years,

(5) Divide the results doterra3..ned \mder (U) by the result
determined under (3)^

(6) Calcixlate the average of the utilization percentages for •
the seconJ. and third preceding months »

(7) Divide t' u result pursuant to (6) by the result pursuant

to (5). Express the result to 1 decimal place and add 100.

(8) Subtrac+ the figure 63^6 from the result of (7).

(9) Multiply the result of (8) by the result of (l).

(10) To obt'dn the Class I proce for each month multiply the

result of (9) by the following seasonal adjustment factors:

January ..<,,, 1,05 July 0«9^

February 1»03 August 1.00

March 1,00 September e.,,« l.OU

April 9h October « 1,07

May , ^88 November ...... 1,09

June „88 December 0..**. 1«07

■y/hen certain relationships are not maintained for a period of
three months between the index of wholesale commodity prices
and an index of the cost of production or an index of the cost
of production and the index of the Class I-A price or the prices
p.'dd at 18 condenserios (see Chicago order for list) and the
Class I-A price, the Secretary must announce a public hearing
t® reconsider Class I prices or ho must give his reasons for
not doing so.

Class I-B - Sam^ as Class T-A price.

Class I-C - The uniform producer price plus 20 cents.

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I, I ■

Mew York (Rev. l/l/^2)

20

Class II - The sura of a buttcrfat component and a skim milk
value •

The butterfat component is related to the price per pound of
New York 92-score butter* IVhen such price is less than 21 o5
cents, the component price is $1.35 per hundredweight for
March through July, and s-'^l-^O per hundredvreight for August
through February. For each 3.5 cents increase in the butter
price, the component increases by 1$ cents.

The skim milk value is computed as follows:

(ii) Multiply by 7.5 the average price for hot roller process
nonfat dry milk solids "other br^mds, human consumption,
carlots, bags or barrels" published in the "Producers*
Price Current" and subtract I4.8 cents*

Class III - A butterfat value (shown below) multiplied by 3.5,
minus 80 cents , plus an amount obtained as follows: Multiply
by 7»8 the weighted ai'-erage price per pound of nonfat dry milk
solids, (as computed by the market administrator giving a
weight of 70 to roller process prices and a weight of 30 to
spray process prices,) human consiimption, carlots, f.Otb, Chicago
manufacturing plants, as published by the USDA for the period
from the 26th day of the preceding month through the 25th day
of the current month.

The butterfat value for the months of March through July is
computed as follows :

(1) Add 2 cents to the simple average of the daily wholesale
selling price per poimd reported for the month by the United
States Department of Agriculture for 92-score butter at Nevi
York and multiply by 1.22.

(2) The butterfat value for the months of August through
Februaiy is computed as follows: Divide the audited weighted
average price per [lO-quart can of )40 percent bottling quality
cream. f,c.b. Boston as published by the United States Depart-
ment of Agriculture for such month by 33*hQo (if this price
is not reported, the butterfat value is computed in accordance
vath (1).) The butterfat value during August through February
shall not be lower than the value computed pursuant to (1).

Butter-cheese adjustment - Milk made into butter or Cheddar,
American Cheddar, Colby, wo.shed curd, or part skimmed Cheddar
cheese, and plant loss associated with such products is priced
at )4 cents (or smaller amount under specified cond^-tions) per
pound of butterfat in such milk less than the Class III orice.

(

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Mew York (P.ev. l/lA^2)

21

Fluid skim differential - Skim milk derived from Class II or
Class III milk is disposed of in the marketing area in the form
of milk, fluid skim milk, cultiired milk drinks, or is imsccounted-
for, is subject to an additional charge equal to the difference
between the Class II Thrice and the Class I-A price divided by
.9125.

Butterfat differentials :

Classe,-:! I-A, I-By_ and I-C - h cents.

Classes II and III « Subtract from the respective class price
the skim milk •^n.lue for Class II ana di-^/ide the remainder by 3^.

Producer Price - Averan,-, of class Dricc differentials weighted
by the pounds of butterfat in each claso for the previous month*

Location Differentials;

Classes I-A, I-B, I-C and skim milk subject to the fluid skim
diiferentiaj. - Specified amounts by 10-mile zones from a base
zone of 201-'^10 miles. The differential for the 1~10 mile zone
(includin;- tiie luarketing area) is plus 1!^ cents* The differential
for the Ij S^l-500 mile zone is minus lli. cents.

Classes II and III - Specified amounts by 2$ mile zones from a
base of 201-22b miles. The differential for the 1-25 mile zone
(including the iriarketing area) is plus 8 cents t The differenti-jfeX
for the U76-500 mile zone is minus 11 cents .

Butter-cheese adjustment - For Class III milk subject to the
butter-cheese adjustment which is received from producers at plants
more distant from the marketing area than the 301-32^ mile zone,
the maximum zone differential allowed is k cents.

All Classes - Handlers pay an additional 5 cents on all milk
received from producers at plants in the marketing area and at
yilants located at specifi'-d places or in specified counties
outside the marketing are-a.

Producer Price - Differentials anpli cable to Class I-A plus
additional differentials of 35 cents for milk delivered to plants
in t}ie marlceting area and 25 c^-nts for milk delivered to plants
located at specified places or in specified coimties.

a

4

♦

New York (Rev. l/l,/52)

22

Method of Accounting for Milk;

The amount of milk in each class is computed by converting to
milk equivalent at average tests of receipts, the butterfat
used in the products of each class » Skim milk subject to the
skim milk differential is computed on a volume basis.

An accounting procedure is set up by the market a drainistrator
in accordance viith general principles specified in the order,
Such procedure includes the manner of determining plant loss
allowances not to exceed 5 per cent of the butterfat content
in the final product, and conversion factors for use in the
absence of specific weights or tests.

After notice and hearing ("meeting"), the market administrator
may issue tentative regulations mth respect to the classifi-
cation of milk v;hich, if approved by the Secretary, become
effective on the first day of the month f ollowing such approval.

Type of Pool;

Market-wide, monthly pool without base rating plan or new
producer clause .

Interhandler Transfers ;

The order sets forth the basis for determining classification
for milk moved in different forms and between different tyoes
of plants .

Outside Purchases;

If milk, cream or skim milk is received at a plant from producers
or pool plants and also from dairy farmers vAio are not producers
and from non-pool plants , the receipts from pool plants and pro-
ducers are assigned as far as possible to Glass I-A, Class II or
to skim milk subject to the fluid skim di.f f crential. After making
this assignment, pool milk and non-pool milk is assigned pro rata
to the remaining classifications.

Handlers are required to pay spedified amounts per hundredvi^eight
for milk, concentrated fluid milk, fluid milk products, cultured
or flavored milk drinks, cream, fluid cream products, and skim
milk which meet each of the follovfing conditions:

(l) It was derived from mj.lk received at o. plant from dairy
farmers (other than the handler operating such plant) who
are not producers, and subsequently moved into the marketing
area or to a pool plant; and

(I

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New York (Rev. l/l/52)

23

(2) The mUk or inilk equivalent of the fcutterfat is in Class
I-A or Class II, or the skim milk is subject to the fluid
skim difft.rcntial.

If the milk cr the milk equivalent of the butterfat or the skim
milk is subject to another Federal order, the payments shall be
any amount h'j which the class price under this order exceeds the
class price under the other order 5 except that payment en skim
milk is at the flidd skira dif ferenti-al .

If the milk is not subject to another Federal order and if the
irdlk is disposed of in the I'ovvd of Class I products, the rate of
pa;;ment is "the difference between the Class I-A and the Class III
price in the 201-10 mile zone. If the milk is disposed of in the
form of Class II products ^ the rate of pa^nnent is the difference
between the Class II price and thr; Class III price, except that
payment on skira milk (either as sicim milk or in cultured milk
drinks) is at the fl\iid skim differential.

If t?ie source of the milk or mj.lk products is not revealed and
if such milk or milk products are disposed of as Class I pro-
ducts, the pajTaent is at thr- Class I-A price in the 201-10 mile
zone. If the products are dispos'-;d of in the form o f Class II
uroducts, the iailk equivalent of the butterfat is priced at the
Class II butterfat component ano skim milk is priced at the
Class JI skim milk component di-dded by =9125 and an amount equal
to the fluid skira differential is added.

Idilk received ,._rom farms in Nassau, and Suffo3.k Counties (which
farms are not approved for sale of rrdlk in New York City) is
not included in the com.putation of pool obligations of handlers.
Such milk is assigned Dro rata to the total classification of
all loilk from producers and pool plants.

Outside Sales ;

Sales of CI :.3S I ^^roducts to areas regulated by another Federal
order are priced at the Class T-A price c Sales of Class I pro-
ducts outside the marketing area and outside of another Federal
order market are priced at 20 cents per hundredweight over the
uniform price,

Froducer-hian tiler :

Milk produced on a handler's orm farm is not subject to pricing
and pooling under the order.

Expense of Actodnistration;

Handlers pay adrdnistrative costs not to exceed 2 cents per
hundredweight on milk received from producers.

c

V

New York (Rev. \/\/$2)

2ii

Special Producer Provisions;

Provision is made for payTnent by handlers into the producer-
settlement' fund and f or later disposition o f payments due
producers who cannot be located and of payments concerning
which dispute arises as to whether such payments are due
producers .

Payments out of the producer-settlement fund are made to
qualified cooperatives at the following rates :

(1) ,75 cent per hundredweight for milk of member producers
caused by a bargaining cooperative to be delivered to a
handler's plant,

(2) 2 cents per hundi^edweight for milk o f member producers
caused to be delivered to a plant of another handler by
a cooperative association vjhich reports and collects for
such milk.

(3) \i cents per hundredweight for milk received from producers
at plants operated by a cooperative. If such a cooperative
has been determined by the Secretary to have sufficient
plant capacity to receive all the milk of member producers
and to be willing and able to receive milk from non-members,
it may be paid \x cents per hundredweight for milk received
from, producers which it caixses to be delivered to another
handler.

Special Handler Provisions :

Storage cream —

(1) On storage cream (separated from producer milk) which is
disposed of as somir cream or reconstituted cream in the
marketing area or which is not established to have b^cn
otherwise utilized, the handler is required to pay into
the producer-settlement fund 9 cents per pound of butter-
fat if the milk was separated in the months of March through
July and 10 cents per pound of buttcrfat if it was separated
in the months of Auj-';ust through Februarye

(2) Payments are made to handlers out of the producer-settle-
ment fund on frozen creaia which cream is separated from
producer milk during April through September and assi{3ned
to butter in the months of January through March, an amount
per pound equal to the buttor-cheese adjustment.

Pages 2^ and 26 have been deleted.

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(Rev. 1/1/52)

FEDER/IL MILK ORDER NO. 68
Wicliita, Kansas

88

Marketing Ar e a :

Wichita, Kansas arid Delano, Kechi, Ilinneha, Riverside, Waco, and
ViTichita Tovmships, .and the- city oi Eastlorough, all in Sedgivick
CoTinty,

Handler :

Person riho disposes of Class I or Class II milk in the marketing
area from a plant approved by the City of Yv^ichita, A cooperative
ajsociation is also a Iiandler with respect to producer milk ivhich
ib diverts to a plant from ?;hich no mi^.k is disposed of in the
marketing are-i, as Class I or Class II,

Pool Plant:

A plant, other tli.an that of a r'roducer-handler , approved by
Wichi.ta, or Gedgrvvicl: County, Kansas health authorities, from
which milk is ^lisposcd of in the marketing area as Class I and
II iri quantities oqual to or in excess of specified percentages
of total receipts as follows :

(1) During onv delivery period Jvly through February, if sales
are at ].L;ast 1$ per cent of r^.-, ceipts,

(2) During any delivery period March, through June if:

(a) The plant was a pool plant during each of the preceding
months August through Decembcir and sales were ec^ual to
50 per cent of receipts, or

(b) The plant was not an approved nlant during each of the

precedj.ng months August tlirough December and current
sales were equal to kO percent of receipts, .

Producer :

Person who produces itiilk in conformity vd.th the health regulations
of Wichita, Kansas, or Sedgmck County, Kansas, which milk is
dcliverr.'d to a pool plant or v-'hich is diverted from a pool plant,
a, ,d eX'^Luding any approved dairy farm^.^r mth respect to milk re-
ceived by a handler partially exeiapted from tliis order, .

Classification:

Class I - Milk :nd skim ndlk (l) disposed of as milk, skim milk,
b\3ttermilk, flavored ndli: , and udlk drinks, (2) used to produce
fluid or froz! n concentrated milk, flavored milk or flavored milk
drinks neither sterilized nor in herm.etically sealed cans, and
(3) ^uilk not accounted for as Class II or Class III.

f

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Wichita (Rev, 1/1/^2)

89

Class II - Milk disposed of as cream, aerated cream, cream
products testing less than l8 percent, eggnog, and cottage
cheese .

Class III - Milk disposed of:

(1) As butter, cheese (other than cottage cheese),
evaporated milk, ice cream, ice cream mix, powdered
milk, and butter starter,

(2) For wholesale baking and candy purposes,

(3) As livestock feed, and

(Ii.) As unaccounted-for milk not in excess of 3 percent

of total receipts (except receipts from other handlers).

Class Prices (3<>8 percent butterfat);

"33asic formula" price - The higher of:

(1) The average of prices paid for 3.5 percent milk
adjusted to 3*8 percent on a direct ratio basis at
18 plants (see list under Chicago order), or

(2) 92~score butter at Chicago multiplied by 3«8 plus
20 percent

PLUS OR MINUS

3-1/2 cents for each half -cent that the price per
pound, carlot, human consumption, of dry milk solids,
f ,o,b. manuf acturinf' plants Chicago area, differs
frcr:i cents. If the above dry milk solids prices
are not quot'^d, then use carlot, human consumption
nonfat dry milk solids delivered at Chicago and sub-
stitute a "make" allowance of 7.5 cents instead of
5.5 cents.

Class I - For the months of January, February, and March 1952,
the basic price for the preceding month plus $1,80; for each
month therea '^'ter the basic price for the preceding month plus
$1.65,

Class II - Class I price less 25 cents.
Class III - The higher of:

(1) A price computed pursuant to (2) above, using prices
for butter and nonfat dry milk solids for the current
delivery period, less l5 cents in April, May, June
and July.

?fi Chita (Rev. l/l/52)

The average of prices paid or to be paid during the
delivery piiriod for ungraded rnilk at the following
plants :

Present Operator

DeCoursey Cream Company
Wilson and Company
Arkansas City Cooperative
Milk Association

Location

Wichita, Kansas
Blackv/ell, Oklahoma

Arkansas City, Kansas

Butterf at Differentials ;

Handler price « None,

Producer price - 92-score butter at Chicago multiplied by 0.12.
Location Differentials ;
None.

Method of Accounting for Milk:

Milk in Class I is accounted for on a volume basis and milk in
Class II and III is accounted for on the basis of the 3«8 percent
milk equivalent of the butterf at in each class.

Type of Pool;

Market-mde pool with base rating; no new producer clause. .
Interhandler Transfers:

Milk or skim milk transferred to another handler is Class I milk
provided that milk or skim milk transferred (except to a producer-
handler) may be classified as Class II or Class III if so reported
by either handler to the market administrator., Cream disposed of
to another handler is classified as Class II milk except that
cream transferred to a handler who l-eo'^llree .5..,lk i'roa prodiatdrs
may be classified as Class III milk if so reported to the market
administrator.

Outside Purchases:

Milk received from sources other than handlers and producers is
subtracted in the following sequence: (l) Class III milk, (2)
Classic milk transferred to unapproved plants, (3) Class I railk
transferred to unapproved plants, (h) other Class II milk, and
(5) other Class I milk.

4

Wichita (Rev. \/\/$2)

91

Outside Sales ;

Milk r.nd skim milk transferred in fluid form over lOQ miles
to an unapproved plant is classified as Class I; fluid cream
transferred over 100 miles to an unapproved plant is classified
as Class III except that Grade A cream is classified as Class II«

Fluid milk and fluid skim milk transferred less than 100 miles
to an unapproved plant Vvhich distributes fluid milk and' cream
is classified as Class I and fluid cream is classified as Class
II, If the v;urchasor permits verification of records by the
market administrator, the above mentioned products are classi-
fied in the highest value classes remaining after subtracting
in series beginning mth the highest use classification milk
received diiectly from dairy farmers.

Milk, skim milk and cream transferred leas than 100 miles in
fluid form to an unapproved plant iivhich does not distribute
fluid milk and cream is classified as Class III*

Milk sold outside the marketing area is priced the same as
milk sold in the marketing area,

Producer-r. findler :

A handler who also produces iidlk but does not purchase m.ilk
from other producers is exempt from regulatory provj.sions of
the order except that such handler must file periodic reports.

Expense of Administration;

Ilandlnrs pay administrative costs b\.it not to exceed \x cents
per huiidredvreight .

Special Producer Provisions :

Deductions, as authori:::ed by m/ambsrs, are turned over to
cooperative as :-:ociation,;^ . A laarketing ser^/ice charge not to
exceed \\ cents per hundredvreight is deducted for non-members.

Pa;^niients on account are made to each producer for milk delivered
during the fii'st l5 days of each month at the approximate value
of such milk .

A base rati-ig plan applies each month of the (S^lendar year, with
bases being deterrrdned by daily average dsliveries during the
preceding August through November, a temporary base being
assigned to producers -./ho did not deliver regularly during such
base-forming period.

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Wichita (Rev. 1/1/^2)

91(a)

Special Handler Proms ions ;

On any milk received by a handler from sources other than
producers or other handlers and sold as Class I or Class II,
the handler is obligated to the Dool for the difference
between the Class III and the Class I or Class II price
unless the handler can prove to the market administrator
that producer milk Y^as not available, directly or from
another handler.

Handlers operating appro-^/ed plants -vrha.ch are not pool plants
must remit to the producer-settlement fund the lesser of:

(1) The difference bet^veen Class I or Class II and
the Class III price on milk sold in the respective
classes, or

(2) Difference between valuation at pool prices and
amounts actually paid to the approved dairy
farmers .

Handlers, who the Secretary determines, dispose of a greater
proportion of their Class I and Class II milk in another
federally regulated market are not subject to this order,
except for reports «, Also, for that proportion of milk the
handler disposes of (except to other handlers) as Class I
and Class II under this ord'^r he must pay into the producer-
settlement fund the amount, if any, by which the value of
such Class I or Class II milk is greater than the value of
such milk as computed pursuant to thie other order.